Australian stocks gained today after a strong rally on Wall Street overnight boosted stocks for the third straight session. Commodity prices and takeover activity also supported the market today.
The S&P/ASX 200 Index closed 59 points higher at 4,734 while on the futures market, the SPI200’s up 50.
To company news around this afternoon: AMP Ltd’s (ASX:AMP) shareholding in AXA Asia Pacific Holdings now stands at 54.9% and it has lodged a consortium agreement along with Paris based AXA SA with the ASX today in an attempt to take over AXA Asia Pacific. The agreement outlines the plan for AXA Asia Pacific’s Asian assets being onsold to AXA SA by AMP and it’s Australian and New Zealand operations being kept by AMP. Today’s events could see the takeover of AXA Asia Pacific after it yesterday rejected a bid from the two companies. AMP shares are 4.41% higher at $6.39.
Rio Tinto (ASX:RIO) says it is producing at a maximum rate in the Pilbara to keep up with demand for iron ore. Chief executive Tom Albanese also said that its proposed iron ore production joint venture with BHP Billiton in Western Australia will be critical for its future success. He said the agreement will bring together the Western Australian iron ore assets of both companies, while keeping marketing arrangements totally separate. Rio Tinto shares are 2.59% higher at $67.45.
Also making news: Downer EDI (ASX:DOW) said has secured over $400 million worth of new contracts on mining and liquefied natural gas projects including $170 million deal with Wesfarmers, $90 million with BHP Billiton and $70 million with Woodside Petroleum.
Count Financial Ltd (ASX:COU) said it expects its first half net profit for the 2010 finacial year to be 150 per cent above the previous corresponding period but said earnings before interest and tax will be 10 per cent lower.
Taking a look at some of the stories covered in our earlier reports: Fairfax Media Ltd (ASX:FXJ) says it expects modest earnings growth in the second half of 2010 as business conditions improve.
Insurance Australia Group Limited (ASX:IAG) said it expects to write 3 - 5% more premiums for the 2010 financial year. The insurer also expects insurance margins at the upper end of its 9 – 11% guidance because of a stronger first quarter.
In the best and worst performers: One of the best performing sectors at the close was the Materials index, up 216 points at 11,671. The worst performing by percentage points was the Utilities index; which lost 3 points to 4,179.
The best performing stock in the S&P/ ASX200 was Western Areas and shares rose 10.25 per cent to $5.38. Shares in Emeco Holdings and Gunns also improved.
The worst performing stock was Sundance Resources as shares lost 6.06% to $0.155. GUD Holdings and Goodman Group shares also closed lower today.
In commodities, gold is trading at $1,100.10 U.S an ounce and since this morning light crude is down 48 cents at $78.95 U.S a barrel.
